1. Merit & Workforce Planning Donna Terrazas PTC/SC – May 2005

2. What is Merit? Equal opportunity in selection and promotion Open competitive process Objective, job-related decisions based on assessment of qualifications Absence of favoritism

3. What is Workforce Planning? Analysis of future organizational needs and development of action plans to address needs Options: Retain current workforce Eliminate the work Do the work differently Fill through external recruiting Fill by developing employees

4. The Inherent Conflict Workforce Planning often viewed as “anointing the heir” or favoritism Only “special” folks get “special” assignments No definition of “special” exists No formal competition for “special” exists The “heir apparent” is typically unchallenged

5. Tools to Manage Pre-Selection Objective needs analysis Assessment of alternatives Focus on competencies Systematic approach Communication

6. Workforce Planning at EBMUD Identified REAL staffing needs and options early Built a plan to address greatest needs first Partnered with top management Accepted that multiple solutions would be needed Learned that workforce initiatives take TIME!

7. We Started Early 2000 – Presentations to management and the board 2001 – Initial planning for the LEAD Academy began 2003 – First LEAD Academy held 2003 – Initial planning for Pathways began 2004 – Early Design for Management 2005 – First Pathways begins

8. EBMUD Staffing Needs Older workforce than most other utilities History of internal promotions in many operations and maintenance areas New hires often older than the average Jobs typically highly technical Retirement plan enhanced in 2003

9. EBMUD Resources Many well established training programs in place Selection and promotion based on merit through an open competitive process Top management aware of aging workforce issues and willing to support workforce planning efforts

10. Our Strategy Focus on employment categories rather than specific positions Forecast/predict potential retirements by category based on eligibility over 5 years Factor in regular turnover and “domino effects” Identify categories where the greatest impacts are likely to occur soonest

11. EBMUD Demographics in 2003 2000 employees; average age 47 Workforce 68% boomers (nationally 44%) 70% managers/supervisors in Lab and ISD retiring within 2 years 65% of first line field supervisors retirement eligible within 5 years 60% of superintendent level retirement eligible within 5 years

12. Issues Too little time to develop staff for lab and ISD leadership Some District functions could be out- sourced or restructured but not field operations Retention highly variable by occupation O&M department willing to partner with HR on substantial WFP development programs

13. The First Target - Supervisors Matriculating from entry level through journey in the field takes about 5 years 98% of all first line supervisors have been promoted from within Combining all foremen job classes, there are over 50 target positions and 250+ in the “feeder pool” Development needs cross department lines

14. Issues & Conflicts Many lower level employees lack fundamental skills:  Math & writing  Leadership Cash incentive to promote is small Union resistance and distrust Department seeking to create a higher performance standard

15. Program Elements Creating the “Success profile” Defining what we will train and what we won’t Establishing qualifications to participate Determining how training will be delivered Marketing  Open competitive process  No guarantees of promotion

16. Second Target – Superintendents Middle level supervision Higher level skills and 2 years college needed Increased future job expectations  Technology  Environmental/municipal regulations  Tighter fiscal environment Many foremen/supervisors in logical feeder pool also retiring

17. Issues Variety of technical operational areas  Maintenance  Water and wastewater operations  Skilled trades 75%+ positions historically filled by promotion Eclectic feeder pool Highly variable levels of readiness

18. Program Elements Success profile that crosses technical disciplines Cross departmental involvement Competitive process to participate  Application  Pre-test  Panel interview  File review Individualized training

19. Assessing for Training Needs Math, English, Reading Comprehension Critical analysis writing project Cognitive skills tests Leadership survey 360 evaluation In-basket situational judgment test B-Pad Readiness interview

20. Why It Works Training sold as a privilege – not a requirement Standards to both compete and participate in these “special” training programs are clearly stated There are REAL promotional opportunities waiting All impacted managers are involved

21. To Date: All LEAD and Pathways participants selected through a competitive process 2 LEAD Academies completed – a third is planned Pathways began in January 2005 and participants are completing their ICDPs Holding vacancies for both Lead and Pathways target positions

22. On the Horizon Design & implementation of OJT components for LEAD graduates Still learning the best ways to use assessment information for development Management Development program design completed with kickoff in January 2006

23. What we’ve learned… WFP is a major undertaking!  High staff demands  Substantial time investment Comprehensive workforce analysis is the essential first step Program design and development must involve cross functional top managers Everything takes longer than you think it will

24. And… When you raise expectations – you must be able to deliver Hold trainees accountable for their own learning and promotion  Attendance, homework, ICDP contracts, etc. Management buy-in and support is critical Won’t stop appointment of “heir apparents” People will surprise you!

25. WFP In Summary Identify current & future staffing needs Develop “success profiles” Assess qualifications of current staff Identify and analyze “skills gaps” Develop strategies to address the gaps Create competition for opportunities to develop

26. And… Start early! Repeat the WFP message in many forums Roll up trend data to illustrate the issues Change the focus from pre-selecting a person to developing a strong pool Involve others in developing solutions Communicate consistently

27. Thanks!